On 12 December 2018, the Hungarian parliament adopted amendments to the Hungarian Labor Code to address the country’s growing labor shortage and improve economic growth. The amendments went into effect 1 January 2019.
The most controversial change is to the overtime regulation. The minimum overtime hours per year increased from 250 hours (300 hours if there is a collective bargaining agreement) to 400 hours, so long as the employer and employee agree in writing. The working cycle, at the end of which employers are required to pay out employees for overtime work that was not compensated by leave, has also been increased from a 12-month cycle to a maximum 36-month cycle under collective agreements.